The Indian startup ecosystem has seen a significant drop in funding by 70% in the first half of 2023 as compared to the last year of the same period, which is indicating an economic downturn in the world and funding winter for startups. This is not the first Indian startup ecosystem has faced this kind of problem, Indian startups are resilient and relatively young.
Indian startup ecosystem
Indian startups raised 5.4 billion dollars in the first 6 months of 2023 as compared to 19.5 billion dollars in the same period of 2022 which shows a significant dip. The key reasons for the dip are majorly economic recession and downturns in major nations like the UK, the US, Germany, France, and the war between Russia-Ukraine which led to the increase in international oil prices and food prices.
Most angel investors or other investment firms want to keep their money in safe assets for now in this uncertain environment instead of investing in startups that have high returns but also have high risks.
The Indian government has taken many steps to support startups, including 10 billion dollars to fund startups that directly support lakhs of jobs in India, however, we still don’t know that will this be enough to support Indian startups.
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